Rajasthan Board RBSE Class 12 Business Studies Notes Chapter 6 Marketing
In ordinary sense, marketing means those business activities which facilitate creation of utility in goods and services & distribution of these goods or services from the point of production to the point of final consumption.
Modern definition of marketing is based on this philosophy, that, satisfaction of consumer is the basic purpose of business.
Therefore, marketing covers all activities concerned with identifying and satisfying the wants of the consumers.
- Marketing management is an important functional area of business.
- Marketing management is the process of planning, organising, directing and controlling the activities related to marketing of goods and services to satisfy the customer’s need and achieve organisational goals.
- Marketing management attempts to create demand through various means to increase its market share and revenue by satisfying the customers.
Functions of Marketing
Marketing involves all those activities which are necessary to move a product from the producer to the consumer in such a manner that the product so supplied maximises the consumer’s satisfaction. Therefore, marketing involves numerous activities related to four points : product, price, physical distribution & promotion. It includes –
- Gathering and analysing market information is the most important function of marketer.
- Marketer has to develop a complete plan, covering various important aspects.
- Marketing communication is a very important function of marketing. Every marketer has to ensure an efficient marketing communication system in his firm.
- Product Designing & Development.
- Market classification.
- Standardisation & Grading.
- Physical distribution.
Importance of Marketing Management :
Marketing process is an on-going process. The importance of marketing management can be studied under the following four heads :
1. Importance for Businessmen/Enterprise
- To maintain its existence in competitive environment
- Basis of Planning
- Enhance Sales
- Large-Scale Production
- Distribution at Minimum Cost
- Increase in Profits
- Effective channels of distribution
- Creation of goodwill
- Growth and expansion
- Fulfilment of social responsibility
- Success in International business.
2. Importance for Customers
- Availability of good quality goods at lowest price
- Enhancement of needs
- Enhances knowledge
- Optimum utilisation of wealth
- Enhances standard of living
- After sales services
- Market information
- Timely availability of goods
- Availability of goods at nearest point
- Consumer satisfaction
- Convienience and Comfort.
3. Importance for Society
- Availability of goods at reasonable price Increase in employment
- Freedom from Malpractices
- Creation of social values
4. Importance for Nation
- Optimum utilisation of national resources
- Protection from economic recession
- Increase in National Income / GDP
- Export promotion
- Increase in government revenue
- Development of agriculture and subsidiary industries
- Marketing : According to Philip Koetler, Marketing is that social process by which individuals & groups obtain what they need by creating offerings & freely exchanging products & services of value with others.
- Marketer : Any person who deals in the marketing process and plays a vital role in marketing is known as Marketer.
- Marketing Management: According to Philip Koetler, “Marketing management is the analysis, planning, implementation and control of programmes, designed to create, build, maintain mutually beneficial exchanges & relationships with target markets for the purpose of achieving organisational goals.
- Standardisation : Standardisation refers to producing goods of pre-determined specification, which helps in achieving uniformity and consistency in the output.
- Grading: It is the process of classification of products into different groups on the basis of some important characteristics such as quality, size, etc.
- Packaging: It refers to designing and developing the package for the products.
- Labelling: It refers to designing and developing the label to be put on the package.
- Price : It is the amount that a- consumer pays for buying and purchasing of any good or service.
- Market: Market is a place where buyers and sellers come together for buying and selling of goods & services.
- Customer : Customer is the person who buys the product for its consumption or use after paying a certain amount for it.
- Customer Product : These products are those which are meant for the final consumption of the customer itself.
- Sustainable Product: All those products which are used again and again are known as sustainable product.
- Service : Services means the facilities for which we are paying and using.
- Industrial Products : These are products which are used for the production of other products and are treated as raw material for the manufacturing of other product.
- Branding : Branding is process of giving a unique name, sign, symbol to a product to distinguish it from other similar products available in the market.
Definitions of Marketing Management:
- According to Philip Kotler, “Marketing management is the analysis, planning, implementation and control of programmes, designed to create, build, maintain mutually beneficial exchanges and relationships with target markets for the purpose of achieving organisational objectives.
- According to Prof. Johnson, “Marketing management is that area of business activities which includes the formation and execution of plans for all the steps of entire selling campaign.”
- According to William Stanton, “Marketing is the total system of interesting business activities designed to plan, price, promote and distribute want-satisfying products and services to the present and potential customers.”
- According to Prof. J. E. Pyle, “Marketing is that phase of business process by which products are matched with the markets and through which transfer of ownership is effected.”